I see the logic in why the IO sector has lost value recently....

I see the logic in why the IO sector has lost value recently. Though much noise is made about continued demand the fact that production will meet demand will impact prices rendering many deposits uneconomic.

The market cap of many smaller players with low grade and high impurity deposits suggests doubts they will be economic in the longer term. FMG will not grow s/p due to higher profit margins per ton but rather from increased production as prices are expected to peak next year then recede. Their deposits of high grade 60%fe will not last forever and seems they have complex plans to dilute via blending to extend life of DSO product.

The only reason some explorers have had some success is that current prices support deposits that were not economic a few short years ago but they also may not be economic in a few short years away.

Reminds me of Australian gold sector where we have exploited the easy high grade deposits and find the lower quality deposits simply too expensive to mine.

Was reading that Brazil have estimated 7mt high grade DSO (+65%) compared to Australia 1mt at (+64%) so I do think even if demand keeps rising Australia being a source of ore may be limited to those with quality deposits once the deamnd is met by production increases of good quality ore.

THX holding would perhaps deter a major investor buying on market, considering better to purchase from THX and they have declined to do so to date so may have an impact on s/p in short term but in long term UMC maybe one of only a few left standing.

So UMC not immune to downward re-rating of IO sector but at the very least seems to have the quality required to return value to shareholders rather than be the Monarch Gold of the IO sector. Comes down to quality always in the mining sector. Only need enough quantity to maximise p/e valuations - so greater than 10 years? UMC look so far better than any other it is miles apart but then it does have a higher market cap to reflect that so patience is key.

Takes time in a bear market for the weeds to be pulled, but they will be and UMC is a rose, aint nothing weedy about it. Just a slow news story atm.